EUR/USD Daily Review 7 Jun 10

Yes. It is a brand new trading week and guess what I FEEL TIRED lol whats new. You folks all know what does a koala do. S L E E P. ( ok i dont get to do so much and hence being tired is a sad alternative ! )

On Friday, we closed the trading week with the exodus of risk seekers. Folks were concerned about the Euro Zone and dismayed about the US Non-Farm Payroll results. In Europe, a government official of Hungary said that Hungary’s economy is in a “very grave situation.” Speculations were aplenty that the crisis is spreading to Eastern Europe. Investors were looking for a higher figure of job creation in the US but was disappointed. Technical strong line of 1.2000 was taken down without much resistance. Just like spears against guns!

Looking at the EUR/USD chart above, we can see the currency pair recovering bits and pieces of it’s lost ground.

The S&P 500 is having a Monday blue of it’s own and is down for now.

Oil is around $72 for now, lower than recent days. This may indicate bumps in the recovery as oil can be a clue to the economy’s health.

Gold is… is.. $1238 !!!!!!! That’s a great deal of high there. Either someone felt that gold is going to depleted soon or risk aversion is lurking. ( You folks know i am joking about the depletion right? LOL )

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Comments regarding Hungary’s grave economic situation were short lived as over the weekend, officials sought to correct the statements and do damage control. There seems to be a general consensus that Hungary is not the next Greece. IMF managing director said that he was “surprised” by the comments. EU’s Economic and Monetary Affairs Commissioner said that Hungary made “serious process” and hence suggestions of a default was “misleading”. While these perhaps stopped the bears from reigning, the Euro remains challenged. There seems to be reports saying that the German’s share of the economic aid package for the Euro Zone may be temporary stopped. Close monitoring should be done for this as it has the potential for being a major sentiment killer.

Over in the US, investors remained depressed about Friday’s NFP. Furthermore, Goldman Sachs was issued a subpoena from the Financial Crisis Inquiry Commission. The market does not like surprises of trouble and this probably caused equities in the US to fall. The G20 meetings did not yield something concrete for now and mentioned that the global recovery faces significant challenges.

While tomorrow seems to be rather light in the data department, Fed Chairman Bernanke is due to speak later. Investors usually pay close attention to his speeches to extract clues of financial polices. Be careful of unexpected spikes.

From a technical point of view, bullish relief may see us testing 1.2 /1.21. Do note that the H4 trendline is coming down to meet the price. Bearish attacks may have us testing 1.1934/900/800.

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I am sooooooooooooo tempted to get an ipad. However there is no flash support. I really don’t understand why since flash is so popular now. A day without farming in Facebook? NO WAY !